I was going to post about the "calm down" stuff, but Phoenix-D already covered that. Thanks.
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Furthermore, Fair-Use doesn't cover your completely. It only covers the production of a single backup copy.
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I was speaking of fair use in a reasonable sense, not what may or may not be on the law books. Politicians almost never have any understanding of the real world in any case. Any law that prohibits me from making an excessive number of backups, mix tapes, etc. for personal use is an unrealistic law. CDs/DVDs are extremely fragile media, and it is unreasonable to force people to have to buy them again when they break. CD-Rs are even more unstable, prone to more random failure (even sitting in storage) than the originals. Hence, making 2 or 3 backups greatly increases the odds that you will actually still have a backup in a few years. So does using a copy regularly instead of the original. This isn't quite as relevant for movies, which are rarely used compared to music and game CDs.
What is important is the license to use the music/movie/software/etc., not the physical media itself. We are already there in the corporate software market, just need to go further. Game CD keys of yore were also going in the right direction, since they are a concrete embodiment of your purchase license (except when you download a keygen, but that is beside the point). The heinous CD copy protection schemes (especially the ones from Starforce and Sony) were three steps backwards.